Correlation Between Fidus Investment and SBC Medical
Can any of the company-specific risk be diversified away by investing in both Fidus Investment and SBC Medical at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Fidus Investment and SBC Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidus Investment Corp and SBC Medical Group, you can compare the effects of market volatilities on Fidus Investment and SBC Medical and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fidus Investment with a short position of SBC Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and SBC Medical.
Diversification Opportunities for Fidus Investment and SBC Medical
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidus and SBC is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp and SBC Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBC Medical Group and Fidus Investment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Fidus Investment Corp are associated (or correlated) with SBC Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBC Medical Group has no effect on the direction of Fidus Investment i.e., Fidus Investment and SBC Medical go up and down completely randomly.
Pair Corralation between Fidus Investment and SBC Medical
Given the investment horizon of 90 days Fidus Investment is expected to generate 29.34 times less return on investment than SBC Medical. But when comparing it to its historical volatility, Fidus Investment Corp is 12.76 times less risky than SBC Medical. It trades about 0.08 of its potential returns per unit of risk. SBC Medical Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 7.31 in SBC Medical Group on October 27, 2024 and sell it today you would earn a total of 17.69 from holding SBC Medical Group or generate 242.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 17.81% |
| Values | Daily Returns |
Fidus Investment Corp vs. SBC Medical Group
Performance |
| Timeline |
| Fidus Investment Corp |
| SBC Medical Group |
Fidus Investment and SBC Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidus Investment and SBC Medical
The main advantage of trading using opposite Fidus Investment and SBC Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment position performs unexpectedly, SBC Medical can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SBC Medical will offset losses from the drop in SBC Medical's long position.| Fidus Investment vs. Golub Capital BDC | Fidus Investment vs. BlackRock TCP Capital | Fidus Investment vs. Carlyle Secured Lending | Fidus Investment vs. Sixth Street Specialty |
| SBC Medical vs. Barings BDC | SBC Medical vs. Univest Pennsylvania | SBC Medical vs. Senmiao Technology | SBC Medical vs. Videolocity International |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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